Venture capital remains a strategic investment for Family Offices, providing exposure to innovation and technology, especially in the era of artificial intelligence.
Family Offices can opt for a high-quality fund-of-funds approach to mitigate risks and ensure participation in the venture capital asset class without requiring deep internal expertise.
Some Family Offices invest in venture capital to gain access to renowned firms for reasons beyond financial gains, such as social signaling and reputational value.
Alpha-driven strategy in venture capital involves active selection and concentrated exposure for returns above market benchmarks, requiring skill, conviction, and tolerance for ambiguity.